Grabiner may bid for fading Energis

TROUBLED telecoms group Energis may get a lift from bid hopes today. Former chief executive Mike Grabiner is considering making an offer, with backing from his new employer Apax Partners. Apax appointed Grabiner as a director earlier this month. It is one of several venture capitalist firms interested in getting Energis on the cheap.

Energis hit a £40 a share peak in 2000, but closed at just 3p on Friday. It is buckling under £1.2bn of debt and expects to breach banking covenants. Investors are braced for a debt-for-equity swap which would leave them with next to nothing. Some fear the banks will force the group into administration.

If a bid does emerge it is unlikely to provide much comfort for shareholders. Reports suggest Apax would offer less than 5p per share and buy up Energis' bonds at a deep discount.

Energis refused to comment. It is already in talks to try and sell off the group's European businesses and will be cutting more than 400 jobs in the UK.

The group is talking with its lenders - led by DKW, Barclays Capital and Bank of America - to try to secure some breathing space. Its biggest shareholder National Grid has said Energis should not rely on it for additional support.